Taylor asked whether Walker knew KeyArena was an inadequate NBA facility as far back as 2004.

"I believe I said publicly it was a challenging arena at that time, yes."

Taylor asked: "The lease was not competitive with other NBA leases, right?"

Walker: "Yes."

At 9:08 a.m. Taylor showed Walker a memo of talking points written by K&L Gates attorney Gerry Johnson, who was then working for the Sonics.

"The current lease between the city and the Sonics does not work for either party," Johnson wrote in the memo. Further, the memo said that due to ongoing financial losses, owners would have to consider selling the team, or even moving outside the region.